Milwaukee-based Jason Industries Inc. announced it has acquired abrasives manufacturer DRONCO GmbH for $34.9 million in cash and $10.9 million in assumed liabilities.
Wunsiedel, Germany-based DRONCO has subsidiaries in France, the United Kingdom and Sweden. It has about $43.6 million in revenue and will become part of the Finishing segment at Jason.
The addition of DRONCO’s abrasives products will allow the segment to solidify its position as a complete surface technology and finishing solutions leader, Jason said. The Finishing segment, which makes technical and maintenance brushes, polishing tools and compounds, will also benefit from cross-selling opportunities in the $6 billion adjacent abrasives market segment.
“DRONCO has earned a privileged reputation as an innovative technology leader that produces high-quality products. We believe that DRONCO is an outstanding strategic fit and we are excited to welcome the company to the Jason family,” said David Westgate, chief executive officer. “Through this acquisition we simultaneously enter a market that is undergoing a steady rise in worldwide demand, further globalize our finishing business, and are presented with substantial opportunities for future growth. We anticipate that the DRONCO transaction will deliver shareholder value in both the near- and long-term as we achieve growth, cost and sales synergies.”
Jason Industries operates a global family of manufacturing companies that make seating, finishing, components and automotive acoustics products. The group includes Milsco in Milwaukee. Jason has 4,400 employees in 14 countries.
The company expects DRONCO will drive about $2.5 million in annual cost synergies within about 18 months.